Are you still resisting the suggestion to accept credit cards? Despite the cost of the associated fees, you are more than likely missing out on precious revenue.
So, is the American obsession with cash coming to an end? According to a May 2019 report by the Federal Reserve Bank of Boston, the short answer is no. However, there is a steady rise in the use of debit and credit cards.
Once, cash was typically the payment method of choice for smaller transactions of under $25 US Dollars. Now, debit cards have edged out cash in sales which range from $10 to $25. See this chart from the 2018 Findings from the Diary of Consumer Payment Choice:
Also notable is that credit cards continue to dominate large-ticket purchases.
Furthermore, millennials, a demographic group with money to spend, often don’t carry any cash at all!
Here’s another interesting statistic from that same report from the Federal Reserve Bank. Those who claim that “cash is king,” make that claim because Americans prefer to spend cash on 30% of their purchases. However, when you combine credit (21 percent) and debit (27 percent), they leave cash in the dust by eating up 48 percent of transactions.
Ok. So, this report doesn’t distinguish between in-person and online purchase. Either way, can you afford to ignore that 48 percent?
By offering secure card payments, you will appeal to a broader range of buyers and cash in on other benefits, as well.
Now that you know a few of the figures let’s take a look at reasons why your business should accept credit cards.
1 – Your competitors already do accept credit cards
First of all, you compete on a playing field that resembles The Hunger Games. Every merchant, regardless of whether they are a brick-and-mortar or online vendor, is in fierce competition for every penny they can grab from consumers.
You can bet that your competitors are accepting credit cards; you need to, too!
2 – Increase your e-commerce presence
You cannot accept cash online. Even long-time local businesses now offer online purchase options. Even companies that are not typical retail stores now offer e-commerce services to bolster sales. An example is local eateries and restaurants who now provide order forms, complete with secure payment forms.
This streamlined approach allows its customers to carry-out or delivery orders in less time. It’s an added revenue stream for those who have tapped into it.
3 – Elevate the perception of your business and raise your perceived value
If your location displays the logos of the major credit card companies on your website or at your cash register, cardholders will perceive you as a legitimate and trustworthy business owner. This perception of legitimacy makes those who prefer making secure card payments instead of carrying cash appreciate you even more.
4 – It’s more convenient for your customers
A well-heeled woman spends 30 minutes selecting several lovely outfits at a high-end boutique. She adores all that she tried on, and she added some accessories pieces to her shopping bag. She arrives at the point-of-sale and learns that the boutique owner doesn’t accept credit cards.
The shop owner points out that there’s an ATM up the street. The shopper promises to grab the cash and return. Instead, she drives away and makes her purchases elsewhere.
Not only is this woman now annoyed, but she might also share the inconvenient experience with her friends and neighbors.
Do you want shoppers in your store to feel this way?
5 – Your customers want to rack up air miles or accrue points
Your customers enjoy the increased safety of not carrying cash. And, they also could look forward to reaping the rewards offered from their credit card company or bank’s debit card. From air miles that enable them to travel to their vacations to points that accrue as cashback rewards (ironic, right?), credit card providers package up creative incentives to gain customer loyalty.
In fact, a 2018 finding by Willow Tree confirms that 61 percent of users select their bank or bank card based on the ability to track rewards on a user-friendly app. This statistic suggests that your customers are really into their debit card (bank) reward programs. Can we not infer that those same customers are just as dedicated to accruing credit card points? Don’t take that gamble with your company.
6 – No more bouncing baby checks
Here is an awkward situation. A valued, long-term customer shopped with you and made a significant purchase. However, they paid by check. Now the bank called to tell you that the check bounced. You have no alternative but to call your loyal customer and share this embarrassing news.
Hey, it happens. A miscalculation in math or a long-forgotten check clearing the bank can leave your customers short on funds in their bank accounts.
But when you’re left paying extra fees—and the merchandise has already left your building— you are in an unenviable position.
Take payments securely with a credit card; you’ll be able to focus on driving sales and customer service instead of collecting money.
7 – People spend more money when they use a credit card
There’s something about counting out crisp bills and parting company with them that stops consumers from spending quite as much. On the other hand, credit cards help you to build more substantial sales by selling larger-ticket items or suggesting additional purchases and impulse items. Consumers are not as opposed to putting the chip into the reader as they are sliding bills across the counter.
After all, a buyer only has a specific amount in his or her wallet, limiting the funds they have before they trek to the bank or ATM.
8 – Positive impact on your cash flow
Finally, you’ll have a positive impact on your cash flow when you decide to include credit cards with your other payment forms.
Instead of needing to send out reminder invoices for unpaid bills or waiting for checks to clear the bank, credit cards process as electronic payments. The process puts money into your bank account faster than invoicing or checks. Secure card payments instead of waiting on checks, and you’ll see the results in your improved aging reports.
9 – Safer than taking cash deposits to the bank
Uday Manik was a 59-year-old man living the American dream. As an immigrant to America, Mr. Manik and his wife purchased and operated a successful convenience store. One evening, after locking up the store for the evening, three teenagers followed his car. The teens shot and killed Mr. Manik and robbed him of his small cash deposit.
This story might sound far-fetched or like a big city problem. However, this situation hit very close to home for me. It happened right here in my sleepy little town (population 802) in rural North Carolina—very close to my house. This type of activity is not confined to big cities and towns; it can literally happen anywhere.
Electronic payments may help keep you safer.
EmailMeForm and Payment Form Security
If you’d like to increase your e-commerce presence or start receiving payment for your invoices, a secure payment form is a must-have item. If that sounds like a lot of time-consuming work, don’t worry.
EmailMeForm has done the heavy lifting for you already. We build the form security that you need into our products. Additionally, we add an extra layer of protection for your business—and your customers—with the Vault.
By storing credit card data in the Vault, you will stop hackers from stealing customer data. Vault has built-in features like multi-factor authentication that will reassure you of data security. Multi-factor authentication requires you to sign in and then confirm your identity, effectively locking out hackers who try to access customer data.
It’s easy to get started with EmailMeForm. Our form set-up is point and click, no coding or special skills required. Or, if you’d like to leave building a secure payment form to our team, our CustomWorks Specialists can help.